Guidewire Software (NYSE:GWRE) Trading Up 4.9% - Still a Buy?

Key Points

• Guidewire Software shares rose 4.9% in midday trading Friday, briefly reaching $130.16, though volume was well below average at about 411,667 shares.
• Analysts remain generally positive: the stock has a Moderate Buy consensus rating with an average price target of $249.85, despite some recent target cuts. Recent calls included upgrades from Zacks and buy ratings from DA Davidson and Stifel.
• The company delivered a strong quarterly report, with EPS of $1.17 and revenue of $359.1 million, both ahead of estimates, while revenue grew 24% year over year.

Guidewire Software, Inc. (NYSE:GWRE - Get Free Report) shares were up 4.9% during mid-day trading on Friday . The stock traded as high as $130.16 and last traded at $129.6720. Approximately 411,667 shares changed hands during mid-day trading, a decline of 73% from the average daily volume of 1,549,458 shares. The stock had previously closed at $123.65.

Wall Street Analyst Weigh In

A number of brokerages have weighed in on GWRE. Weiss Ratings reissued a "hold (c)" rating on shares of Guidewire Software in a report on Thursday, January 22nd. Wells Fargo & Company dropped their target price on shares of Guidewire Software from $250.00 to $210.00 and set an "overweight" rating on the stock in a report on Wednesday, February 4th. Stifel Nicolaus dropped their target price on shares of Guidewire Software from $300.00 to $250.00 and set a "buy" rating on the stock in a report on Friday, March 6th. Zacks Research raised shares of Guidewire Software from a "hold" rating to a "strong-buy" rating in a report on Friday, March 13th. Finally, DA Davidson reissued a "buy" rating and set a $246.00 target price on shares of Guidewire Software in a report on Tuesday, March 10th. One investment analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $249.85.

Guidewire Software Stock Up 6.5%

The firm's 50-day moving average price is $144.63 and its 200 day moving average price is $169.87. The firm has a market cap of $11.15 billion, a P/E ratio of 59.85 and a beta of 0.91. The company has a quick ratio of 2.93, a current ratio of 2.93 and a debt-to-equity ratio of 0.45.

Guidewire Software (NYSE:GWRE - Get Free Report) last released its quarterly earnings results on Thursday, March 5th. The technology company reported $1.17 EPS for the quarter, topping the consensus estimate of $0.77 by $0.40. The business had revenue of $359.10 million during the quarter, compared to analyst estimates of $342.88 million. Guidewire Software had a net margin of 14.11% and a return on equity of 13.44%. The company's quarterly revenue was up 24.0% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.51 earnings per share. As a group, research analysts expect that Guidewire Software, Inc. will post 1.84 earnings per share for the current year.

Insider Transactions at Guidewire Software

In other news, CEO Michael George Rosenbaum sold 4,737 shares of the company's stock in a transaction dated Tuesday, March 17th. The shares were sold at an average price of $163.86, for a total transaction of $776,204.82. Following the completion of the transaction, the chief executive officer owned 221,206 shares in the company, valued at approximately $36,246,815.16. This represents a 2.10% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Jeffrey Elliott Cooper sold 4,757 shares of the company's stock in a transaction dated Friday, March 13th. The stock was sold at an average price of $158.72, for a total transaction of $755,031.04. Following the transaction, the chief financial officer owned 67,996 shares of the company's stock, valued at $10,792,325.12. This represents a 6.54% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 32,479 shares of company stock worth $5,007,134. Insiders own 0.46% of the company's stock.

Hedge Funds Weigh In On Guidewire Software

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. M.D. Sass LLC grew its position in Guidewire Software by 71.5% in the 1st quarter. M.D. Sass LLC now owns 55,208 shares of the technology company's stock valued at $8,257,000 after buying an additional 23,022 shares in the last quarter. Arrowstreet Capital Limited Partnership grew its position in Guidewire Software by 42.2% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 598,396 shares of the technology company's stock valued at $89,496,000 after buying an additional 177,672 shares in the last quarter. Caxton Associates LLP bought a new position in Guidewire Software in the 1st quarter valued at about $299,000. Gavilan Investment Partners LLC grew its position in Guidewire Software by 30.0% in the 1st quarter. Gavilan Investment Partners LLC now owns 149,500 shares of the technology company's stock valued at $22,359,000 after buying an additional 34,500 shares in the last quarter. Finally, Lido Advisors LLC grew its position in Guidewire Software by 3.9% in the 1st quarter. Lido Advisors LLC now owns 28,506 shares of the technology company's stock valued at $4,263,000 after buying an additional 1,064 shares in the last quarter.

About Guidewire Software

Guidewire Software, Inc develops software products and cloud services for property and casualty (P&C) insurance carriers. Headquartered in San Mateo, California, the company's offerings are designed to help insurers manage the core functions of their business—policy administration, billing and claims—while supporting digital engagement, analytics and operational modernization.

Guidewire's core product portfolio is commonly known as the InsuranceSuite, which includes PolicyCenter for policy administration, BillingCenter for billing and receivables, and ClaimCenter for claims management.

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